Analysing Household and Intra-urban Variants in the Consumption of Financial Services: Uncovering “Exclusion” in an English City

Sabrina Bunyan, Alan Collins, Gianpiero Torrisi

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

This study provides an empirical assessment of the socioeconomic factors that determine household exclusion from consumer financial services. A unique microeconomic data set, of interview data, collected from a representative cross-sectional sample of 1005 households is analysed using logistic regression techniques. In investigating exclusion from consumer financial services, both financial self-exclusion and institutional-led financial exclusion are examined. Indicators of financial self-exclusion include the absence of a savings account or home contents insurance, whilst indicators of institutional-led financial exclusion include the use of “doorstep lenders.” Findings show that both measures of financial self-exclusion are determined by income, education, age, housing tenure, and social participation, whilst financial exclusion is generally associated with socioeconomic characteristics such as age, gender, housing tenure, working status, income, disability, and the presence of young people in household but not with respondents’ residential area, education level, internet use, and social participation. These results offer useful insights to policy makers and financial services providers in terms of the range and mix of policies and instruments that local and central Government can deploy to address exclusion.
LanguageEnglish
Pages199-221
JournalJournal of Consumer Policy
Volume39
Issue number2
Early online date12 Apr 2016
DOIs
Publication statusE-pub ahead of print - 12 Apr 2016

Fingerprint

Exclusion
Household
Financial services
Financial exclusion
Housing tenure
Education
Income
Insurance
Internet use
Local government
Savings
Socioeconomic characteristics
Central government
Microeconomics
Politicians
Service provider
Socioeconomic factors
Logistic regression

Keywords

  • Financial exclusion
  • self-exclusion
  • household data

Cite this

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title = "Analysing Household and Intra-urban Variants in the Consumption of Financial Services: Uncovering “Exclusion” in an English City",
abstract = "This study provides an empirical assessment of the socioeconomic factors that determine household exclusion from consumer financial services. A unique microeconomic data set, of interview data, collected from a representative cross-sectional sample of 1005 households is analysed using logistic regression techniques. In investigating exclusion from consumer financial services, both financial self-exclusion and institutional-led financial exclusion are examined. Indicators of financial self-exclusion include the absence of a savings account or home contents insurance, whilst indicators of institutional-led financial exclusion include the use of “doorstep lenders.” Findings show that both measures of financial self-exclusion are determined by income, education, age, housing tenure, and social participation, whilst financial exclusion is generally associated with socioeconomic characteristics such as age, gender, housing tenure, working status, income, disability, and the presence of young people in household but not with respondents’ residential area, education level, internet use, and social participation. These results offer useful insights to policy makers and financial services providers in terms of the range and mix of policies and instruments that local and central Government can deploy to address exclusion.",
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author = "Sabrina Bunyan and Alan Collins and Gianpiero Torrisi",
note = "Reference text: Arnold, G. (2008). Corporate Financial Management (4th ed.). Harlow: Financial Times Prentice Hall. Beck, T., & De La Torre, A. (2007). The basic analytics of access to financial services. Financial Markets, Institutions Instruments, 16, 79–117. CrossRef Bucy, E. P. (2000). Social access to the internet. The Harvard International Journal of Press Politics, 5, 50–61. CrossRef Bunyan, S., & Collins, A. (2013). Digital exclusion despite digital accessibility: Empirical evidence from an English city. Tijdschrift voor Economische en Sociale Geografie, 104, 588–603. Byrne, N., McCarthy, O., & Ward, M. (2007). Money-lending and financial exclusion. Public Money and Management, 27, 45–52. CrossRef Carbo, S., Gardener, E. P. M., & Molyneux, P. (2007). Financial exclusion in Europe. Public Money and Management, 27, 21–27. CrossRef Collard, S., Kempson, E., & Whyley, C. (2001). Tackling financial exclusion. Policy. The Policy Press and the Joseph Rowantree Foundation. Department for Communities and Local Government. (2015). English housing survey: Households 2013-2014. London: Department for Communities and Local Government. Devlin, J. F. (2005). A detailed study of financial exclusion in the UK. Journal of Consumer Policy, 28, 75–108. CrossRef Devlin, J. F. (2009). An analysis of influences on total financial exclusion. The Service Industries Journal, 29, 1021–1036. CrossRef Dutton, W.H., Helsper, E.J., & Gerber, M.M. (2009). The internet in Britain: 2009. Oxford Internet Institute: University of Oxford. Ergungor, O. E. (2010). Bank branch presence and access to credit in low‐ to moderate‐income neighbourhoods. Journal of Money, Credit, and Banking, 42, 1321–1349. CrossRef EC. (2008). Financial services provision and prevention of financial exclusion. Brussels: European Commission. FDIC. (2014). 2013 FDIC National Survey of Unbanked and Underbanked Households. Federal Deposit Insurance Corporation. Financial Inclusion Commission. (2015). Financial Inclusion. Improving the health of the nation (March 2015). UK: Financial Inclusion Commission. Financial Inclusion Taskforce. (2010). Banking services and poorer households. London: HM Treasury. Fuller, D. (1998). Credit union development: Financial inclusion and exclusion. Geoforum, 29, 145–157. Honohan, P. (2008). Cross-country variation in household access to financial services. Journal of Banking & Finance, 32, 2493–2500. CrossRef Huston, S. J. (2010). Measuring financial literacy. Journal of Consumer Affairs, 44, 296–316. CrossRef Kellstedt, P. M., Zahran, S., & Vedlitz, A. (2008). Personal efficacy, the information environment, and attitudes toward global warming and climate change in the United States. Risk Analysis, 28, 113–126. CrossRef Kempson, E., & Whyley, C. (1999). Kept in or opted out? Understanding and combating financial exclusion. Bristol: Policy Press. Kempson, E., Whyley, C., Caskey, J., & Collard, S. (2000). In or out? Financial exclusion: A literature and research review, Consumer Research Paper 3. London: Financial Services Authority. Leyshon, A., & Thrift, N. (1993). The restructuring of the UK financial services industry in the 1990s: A reversal of fortune? Journal of Rural Studies, 9, 223–241. Leyshon, A., & Thrift, N. (1995). Geographies of financial exclusion: Financial abandonment in Britain and the United States. Transactions of the Institute of British Geographers, 20, 312–341. Leyshon, A., Signoretta, P., Knights, D., Alferoff, C., & Burton, D. (2006). Walking with moneylenders: The ecology of the UK home-collected credit industry. Urban Studies, 43, 161–186. Leyshon, A., French, S., & Signoretta, P. (2008). Financial exclusion and the geography of bank and building society branch closure in Britain. Transactions of the Institute of British Geographers, 33, 447–465. CrossRef Marshall, J. N. (2004). Financial institutions in disadvantaged areas: A comparative analysis of policies encouraging financial inclusion in Britain and the United States. Environment and Planning A, 36, 241–262. McKillop, D., & Wilson, J. (2007). Financial exclusion. Public Money and Management, 27, 9–12. CrossRef McQuaid, R., & Edgell, V. (2010). Financial Capability: Evidence Review. Edinburgh: Edinburgh Napier University. Mitton, L. (2008). Financial inclusion in the UK: Review of policy and practice. York: Joseph Rowntree Foundation. O'Connor, R. E., Bord, R. J., & Fisher, A. (1999). Risk perceptions, general environmental beliefs, and willingness to address climate change. Risk Analysis, 19, 461–471. O'Donnell, N., & Keeney, M. (2010). Financial capability in Ireland and a comparison with the UK. Public Money & Management, 30, 355–362. CrossRef Ofcom. (2015). The Communications Market Report (August 2015). UK: Ofcom. ONS. (2012). Regional profiles: Key statistics – south east, august 2012. London: ONS. Office for National Statistics. (2014). Trends in the United Kingdom housing market, 2014. London: Office for National Statistics. OFT. (1999). Vulnerable consumers and financial services (p. OFT255). London: Office of Fair Trading. Portsmouth City Council. (2010). Portsmouth Population Profile: A Profile of Portsmouth’s Population using Output Area Classification. Portsmouth: Portsmouth City Council. Portsmouth City Council. (2012). The Portsmouth Plan: Portsmouth Core Strategy. Portsmouth: Portsmouth City Council. Rowlingson, K., & McKay, S. (2014). Financial Inclusion: Annual monitoring report 2014. Birmingham: University of Birmingham. Rubin, D. B. (1977). Formalizing subjective notions about the effect of nonrespondents in sample surveys. Journal of the American Statistical Association, 72, 538–543. CrossRef Smith, R. J., & Blundell, W. (1986). An exogeneity test for a simultaneous equation Tobit model with an application to labor supply. Econometrica, 54, 679–685. CrossRef Social Exclusion Unit. (2001). National strategy for neighbourhood renewal policy action team audit. London: Cabinet Office. Tabachnick, B. G., & Fidell, L. S. (2001). Using multivariate statistics (5th ed.). Boston, MA: Pearson Education. Treasury, H. M. (2007a). Financial Inclusion: The way forward. London: H.M. Treasury. Treasury, H. M. (2007b). Financial Inclusion: An action plan for 2008-11. London: H.M. Treasury. Vickers, D., & Rees, D. (2007). Creating the UK National Statistics 2001 output area classification. Journal of the Royal Statistical Society, Series A, 170, 379–403. CrossRef Wallace, A., & Quilgars, D. (2005). Homelessness and Financial Exclusion: A Literature Review. University of York: Centre for Housing Policy. Winchester, N. (2009). Social housing and digital exclusion. London: National Housing Federation.",
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Analysing Household and Intra-urban Variants in the Consumption of Financial Services: Uncovering “Exclusion” in an English City. / Bunyan, Sabrina; Collins, Alan; Torrisi, Gianpiero.

In: Journal of Consumer Policy, Vol. 39, No. 2, 12.04.2016, p. 199-221.

Research output: Contribution to journalArticle

TY - JOUR

T1 - Analysing Household and Intra-urban Variants in the Consumption of Financial Services: Uncovering “Exclusion” in an English City

AU - Bunyan, Sabrina

AU - Collins, Alan

AU - Torrisi, Gianpiero

N1 - Reference text: Arnold, G. (2008). Corporate Financial Management (4th ed.). Harlow: Financial Times Prentice Hall. Beck, T., & De La Torre, A. (2007). The basic analytics of access to financial services. Financial Markets, Institutions Instruments, 16, 79–117. CrossRef Bucy, E. P. (2000). Social access to the internet. The Harvard International Journal of Press Politics, 5, 50–61. CrossRef Bunyan, S., & Collins, A. (2013). Digital exclusion despite digital accessibility: Empirical evidence from an English city. Tijdschrift voor Economische en Sociale Geografie, 104, 588–603. Byrne, N., McCarthy, O., & Ward, M. (2007). Money-lending and financial exclusion. Public Money and Management, 27, 45–52. CrossRef Carbo, S., Gardener, E. P. M., & Molyneux, P. (2007). Financial exclusion in Europe. Public Money and Management, 27, 21–27. CrossRef Collard, S., Kempson, E., & Whyley, C. (2001). Tackling financial exclusion. Policy. The Policy Press and the Joseph Rowantree Foundation. Department for Communities and Local Government. (2015). English housing survey: Households 2013-2014. London: Department for Communities and Local Government. Devlin, J. F. (2005). A detailed study of financial exclusion in the UK. Journal of Consumer Policy, 28, 75–108. CrossRef Devlin, J. F. (2009). An analysis of influences on total financial exclusion. The Service Industries Journal, 29, 1021–1036. CrossRef Dutton, W.H., Helsper, E.J., & Gerber, M.M. (2009). The internet in Britain: 2009. Oxford Internet Institute: University of Oxford. Ergungor, O. E. (2010). Bank branch presence and access to credit in low‐ to moderate‐income neighbourhoods. Journal of Money, Credit, and Banking, 42, 1321–1349. CrossRef EC. (2008). Financial services provision and prevention of financial exclusion. Brussels: European Commission. FDIC. (2014). 2013 FDIC National Survey of Unbanked and Underbanked Households. Federal Deposit Insurance Corporation. Financial Inclusion Commission. (2015). Financial Inclusion. Improving the health of the nation (March 2015). UK: Financial Inclusion Commission. Financial Inclusion Taskforce. (2010). Banking services and poorer households. London: HM Treasury. Fuller, D. (1998). Credit union development: Financial inclusion and exclusion. Geoforum, 29, 145–157. Honohan, P. (2008). Cross-country variation in household access to financial services. Journal of Banking & Finance, 32, 2493–2500. CrossRef Huston, S. J. (2010). Measuring financial literacy. Journal of Consumer Affairs, 44, 296–316. CrossRef Kellstedt, P. M., Zahran, S., & Vedlitz, A. (2008). Personal efficacy, the information environment, and attitudes toward global warming and climate change in the United States. Risk Analysis, 28, 113–126. CrossRef Kempson, E., & Whyley, C. (1999). Kept in or opted out? Understanding and combating financial exclusion. Bristol: Policy Press. Kempson, E., Whyley, C., Caskey, J., & Collard, S. (2000). In or out? Financial exclusion: A literature and research review, Consumer Research Paper 3. London: Financial Services Authority. Leyshon, A., & Thrift, N. (1993). The restructuring of the UK financial services industry in the 1990s: A reversal of fortune? Journal of Rural Studies, 9, 223–241. Leyshon, A., & Thrift, N. (1995). Geographies of financial exclusion: Financial abandonment in Britain and the United States. Transactions of the Institute of British Geographers, 20, 312–341. Leyshon, A., Signoretta, P., Knights, D., Alferoff, C., & Burton, D. (2006). Walking with moneylenders: The ecology of the UK home-collected credit industry. Urban Studies, 43, 161–186. Leyshon, A., French, S., & Signoretta, P. (2008). Financial exclusion and the geography of bank and building society branch closure in Britain. Transactions of the Institute of British Geographers, 33, 447–465. CrossRef Marshall, J. N. (2004). Financial institutions in disadvantaged areas: A comparative analysis of policies encouraging financial inclusion in Britain and the United States. Environment and Planning A, 36, 241–262. McKillop, D., & Wilson, J. (2007). Financial exclusion. Public Money and Management, 27, 9–12. CrossRef McQuaid, R., & Edgell, V. (2010). Financial Capability: Evidence Review. Edinburgh: Edinburgh Napier University. Mitton, L. (2008). Financial inclusion in the UK: Review of policy and practice. York: Joseph Rowntree Foundation. O'Connor, R. E., Bord, R. J., & Fisher, A. (1999). Risk perceptions, general environmental beliefs, and willingness to address climate change. Risk Analysis, 19, 461–471. O'Donnell, N., & Keeney, M. (2010). Financial capability in Ireland and a comparison with the UK. Public Money & Management, 30, 355–362. CrossRef Ofcom. (2015). The Communications Market Report (August 2015). UK: Ofcom. ONS. (2012). Regional profiles: Key statistics – south east, august 2012. London: ONS. Office for National Statistics. (2014). Trends in the United Kingdom housing market, 2014. London: Office for National Statistics. OFT. (1999). Vulnerable consumers and financial services (p. OFT255). London: Office of Fair Trading. Portsmouth City Council. (2010). Portsmouth Population Profile: A Profile of Portsmouth’s Population using Output Area Classification. Portsmouth: Portsmouth City Council. Portsmouth City Council. (2012). The Portsmouth Plan: Portsmouth Core Strategy. Portsmouth: Portsmouth City Council. Rowlingson, K., & McKay, S. (2014). Financial Inclusion: Annual monitoring report 2014. Birmingham: University of Birmingham. Rubin, D. B. (1977). Formalizing subjective notions about the effect of nonrespondents in sample surveys. Journal of the American Statistical Association, 72, 538–543. CrossRef Smith, R. J., & Blundell, W. (1986). An exogeneity test for a simultaneous equation Tobit model with an application to labor supply. Econometrica, 54, 679–685. CrossRef Social Exclusion Unit. (2001). National strategy for neighbourhood renewal policy action team audit. London: Cabinet Office. Tabachnick, B. G., & Fidell, L. S. (2001). Using multivariate statistics (5th ed.). Boston, MA: Pearson Education. Treasury, H. M. (2007a). Financial Inclusion: The way forward. London: H.M. Treasury. Treasury, H. M. (2007b). Financial Inclusion: An action plan for 2008-11. London: H.M. Treasury. Vickers, D., & Rees, D. (2007). Creating the UK National Statistics 2001 output area classification. Journal of the Royal Statistical Society, Series A, 170, 379–403. CrossRef Wallace, A., & Quilgars, D. (2005). Homelessness and Financial Exclusion: A Literature Review. University of York: Centre for Housing Policy. Winchester, N. (2009). Social housing and digital exclusion. London: National Housing Federation.

PY - 2016/4/12

Y1 - 2016/4/12

N2 - This study provides an empirical assessment of the socioeconomic factors that determine household exclusion from consumer financial services. A unique microeconomic data set, of interview data, collected from a representative cross-sectional sample of 1005 households is analysed using logistic regression techniques. In investigating exclusion from consumer financial services, both financial self-exclusion and institutional-led financial exclusion are examined. Indicators of financial self-exclusion include the absence of a savings account or home contents insurance, whilst indicators of institutional-led financial exclusion include the use of “doorstep lenders.” Findings show that both measures of financial self-exclusion are determined by income, education, age, housing tenure, and social participation, whilst financial exclusion is generally associated with socioeconomic characteristics such as age, gender, housing tenure, working status, income, disability, and the presence of young people in household but not with respondents’ residential area, education level, internet use, and social participation. These results offer useful insights to policy makers and financial services providers in terms of the range and mix of policies and instruments that local and central Government can deploy to address exclusion.

AB - This study provides an empirical assessment of the socioeconomic factors that determine household exclusion from consumer financial services. A unique microeconomic data set, of interview data, collected from a representative cross-sectional sample of 1005 households is analysed using logistic regression techniques. In investigating exclusion from consumer financial services, both financial self-exclusion and institutional-led financial exclusion are examined. Indicators of financial self-exclusion include the absence of a savings account or home contents insurance, whilst indicators of institutional-led financial exclusion include the use of “doorstep lenders.” Findings show that both measures of financial self-exclusion are determined by income, education, age, housing tenure, and social participation, whilst financial exclusion is generally associated with socioeconomic characteristics such as age, gender, housing tenure, working status, income, disability, and the presence of young people in household but not with respondents’ residential area, education level, internet use, and social participation. These results offer useful insights to policy makers and financial services providers in terms of the range and mix of policies and instruments that local and central Government can deploy to address exclusion.

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KW - self-exclusion

KW - household data

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DO - 10.1007/s10603-016-9319-7

M3 - Article

VL - 39

SP - 199

EP - 221

JO - Journal of Consumer Policy

T2 - Journal of Consumer Policy

JF - Journal of Consumer Policy

SN - 0168-7034

IS - 2

ER -